AAT Advanced Diploma in Accounting

Synoptic assessment – Sample assessment 2 – Task 2.1

Advanced Diploma Synoptic (AQ2016)

For use in AAT qualifications (see below for more information)

Practice assessment 2: Assessment book and data

This practice task is for familiarisation purposes only and must not be used in place of a ‘live’ task. When you feel
prepared to sit the live assessment please contact your Training Provider who can schedule a live assessment
for you.

Task 2.1

Notice to candidates

You must:
• download files as instructed
• save and rename files as instructed
• upload the required files to the assessment platform within the time allowed
• make sure you have uploaded the correct files before deleting locally saved copies at the end of the assessment.

You must not:

• use the internet, other than to access the assessment platform
• access email and unauthorised data, however stored.

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Task 2.1 (25 marks)

Your role
You are Chris Makepeace, a part-qualified Accounting Technician. You work for NewPlace, a business which retails office equipment. NewPlace
is owned and run by Mo Hussain.
You cover all aspects of bookkeeping and accounting for the business. NewPlace also uses the services of Addo & Co, a firm of accountants.
Kiera Jackson is the accountant at Addo & Co who carries out tasks for NewPlace. 

Today’s date is 15 April 20X8.

You must save this spreadsheet file from the assessment environment. Save the spreadsheet file in the appropriate location and rename it to
include your AAT membership number and the name of the task in the format: ‘AVSY Task 2-1 AATNumber’.
For example: AVSY Task 2-1 123456.xlsx
A high degree of accuracy is required. You must save your work as a .XLSX file at regular intervals to avoid losing your work.

Tasks

Mo Hussain has asked you to help update the budget. Open the worksheet called ‘Dec 20X8’. This contains data on the current budgeted
performance of NewPlace for the six months ending 31 December 20X8 and a pro forma to be completed.

(a) Using the data available in the 'Dec 20X8' worksheet:

• Complete the pro forma to calculate Newplace’s ‘Current budgeted net profit/loss for the six months ended 31 December 20X8’ using
formulas where appropriate. Use column C for total sales, cost of sales, gross profit and net profit. Column B can be used for subtotals.

(6 marks)

(b) In the 'Dec 20X8' worksheet:

• Use a formula to calculate the contribution per unit in cell C26.
• Use a formula to calculate the number of units to be sold in order to break even in cell C27.
• Use a formula to calculate the margin of safety formatted as a percentage in cell C28. (4 marks)

(c) In the 'Revised' worksheet:

• Copy the data in cells A1:C28 in the 'Dec 20X8' worksheet and paste into the 'Revised' worksheet starting in cell A1.
• Using formulas which link to the 'Dec 20X8' worksheet, implement the following changes to revise the figures in cells B3 and B4:
• sales volume will increase by 10%
• average selling prices will increase by 5%
• Set a print area so that only the "NewPlace: Current budgeted net profit/loss for six months ended 31 December 20X8" statement can be
printed. (4 marks)

(d) Mo has asked you to prepare a capital investment appraisal. In the 'New premises' worksheet, using the information given in cells B4:C13:

• Calculate the net cash flow in cells C17:C22. Use minus signs to indicate any negative values.
• Calculate the cumulative cash flow in cells D17:D22. Use minus signs to indicate any negative values.
• Calculate the payback period in years and months in cells D25 and D26. Use a formula to calculate the number of months.
Mo requires a rate of return of 12%.
• Copy the relevant discount factors from the table of discounted cash flows into the appropriate cells in the discount factor column.
• Use a formula to calculate the discounted cash flow for each year. Use minus signs to indicate any negative figures.
• Calculate the net present value (NPV) in cell F26.
• Use an IF formula in cell C28 to show "Accept proposal" if the payback years (D25) is less than 5 and NPV (F26) is positive, or, "Reject
proposal" if only one of the conditions is met, or neither condition is met. (11 marks)

At the end of this task you should have one spreadsheet (saved as an .XLSX file) to upload to the assessment environment. This should have
four worksheets titled: 'Assessment tasks', ‘Dec 20X8’, ‘Revised’ and 'New Premises' with information and data in them.

Copyright © 2016 AAT

All rights reserved. Reproduction is permitted for personal and educational use only. No part of this content may be reproduced or transmitted for commercial use without the
copyright holder’s written consent.
 AAT Advanced Diploma in Accounting
Synoptic assessment – Sample assessment 2 – Task 2.1
Advanced Diploma Synoptic Assessment

Assessment book and data

Advanced Diploma Synoptic forms part of the following qualifications:

AAT Advanced Diploma in Accounting (AQ2016)
QCF qual ref: 601/6554/6

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NewPlace: Current budgeted performance data for six
months to 31 December 20X8

Sales volume (units) 10000

Average selling price per unit £165
Average cost per unit £125
Wages of shop staff £102,500
Rent and rates £85,000
Administration overheads £62,500
Depreciation £75,000

NewPlace: Current budgeted net profit/loss for six

months ended 31 December 20X8 £ £
Sales
Cost of sales:
Cost of goods for resale

Gross profit
Fixed overheads:
Wages of shop staff
Rent and rates
Administration overheads
Depreciation

Net profit/loss for the six months

Contribution per unit

Number of units to sell to break even
Margin of safety as a %
Cost of premises 260,000 Table of discounted cash flows
Annual costs 18,200

Cash inflows Year 1

Year 2
Year 1 68,400 Year 3
Year 2 74,200 Year 4
Year 3 75,600 Year 5
Year 4 77,300 Year 6
Year 5 82,000

cumulative discount discounted cash

net cash flow cash flow factor flow
Year 0 1.000
Year 1
Year 2
Year 3
Year 4
Year 5

Payback period: years

month (s) NPV:

Decision
f discounted cash flows

10% 12% 14% 16% 18% 20%

0.909 0.893 0.877 0.862 0.847 0.833
0.826 0.797 0.769 0.743 0.718 0.694
0.751 0.712 0.675 0.641 0.609 0.579
0.683 0.636 0.592 0.552 0.516 0.482
0.621 0.567 0.519 0.476 0.437 0.402
0.564 0.507 0.456 0.410 0.370 0.335